Cognex(CGNX) - 2024 Q4 - Annual Report

Revenue and Growth - Revenue for 2024 was $914,515,000, representing a 9% increase from$ 837,547,000 in 2023, driven by the acquisition of Moritex Corporation and higher revenue from logistics and semiconductor industries [134][138]. - Revenue from the logistics industry increased by 20% year-over-year, representing approximately 23% of total revenue in 2024 [139]. - Revenue from the semiconductor industry grew by 80% year-over-year, accounting for approximately 11% of total revenue in 2024 [140]. - Revenue from customers in the Americas increased by 6%, while revenue from Europe decreased by 1% in 2024 [141][143]. - The acquisition of Moritex contributed approximately 8% to total revenue in 2024 [138]. - The company's revenue for the year ended December 31, 2024, was $914,515,000, representing an increase from$ 837,547,000 in 2023, but a decrease from $1,006,090,000 in 2022 [196]. - Revenue from the Americas was$ 350,155,000 in 2024, up from $330,415,000 in 2023, indicating a growth of 6.3% [301]. Profitability and Margins - Gross margin decreased to 68% in 2024 from 72% in 2023, primarily due to a less favorable revenue mix and pricing pressures [135][143]. - Operating income decreased to 13% of revenue in 2024 compared to 16% in 2023, with net income decreasing to 12% of revenue or$ 0.62 per share [137]. - The gross profit for 2024 was $625,794,000, compared to$ 601,241,000 in 2023, indicating a slight improvement year-over-year [196]. - Operating income for 2024 was $115,065,000, down from$ 130,702,000 in 2023 and significantly lower than $246,229,000 in 2022 [196]. - Net income for 2024 was$ 106,171,000, a decrease from $113,234,000 in 2023 and$ 215,525,000 in 2022 [196]. - The total comprehensive income for 2024 was $78,730,000, a decline from$ 137,195,000 in 2023 and $194,170,000 in 2022 [198]. Expenses and Costs - Selling, general, and administrative expenses increased by 9% in 2024, primarily due to investments in sales personnel and costs related to the Moritex acquisition [148]. - Research, development, and engineering expenses remained relatively flat at$ 139,815,000, representing 15% of total revenue in 2024 [146][147]. - Operating expenses increased by 9% to $510,729,000 in 2024, maintaining a consistent percentage of total revenue at 56% [145]. - The total operating lease expense increased to$ 14,131,000 in 2024 from $11,598,000 in 2023, representing a rise of approximately 21.8% [283]. Cash Flow and Investments - Net cash provided by operating activities totaled$ 149,081,000 in 2024, driven by growth in logistics revenue [158]. - Net cash used in investing activities was $38,969,000, primarily for capital expenditures of$ 15,043,000 related to new product introductions [159]. - The company reported cash dividends per common share of $0.305 in 2024, up from$ 0.286 in 2023 and $0.265 in 2022 [196]. - As of December 31, 2024, the company had an accumulated cash and investment balance of$ 586,948,000, indicating strong liquidity [157]. - The Company’s total investments amounted to $586,948,000 as of December 31, 2024, compared to$ 576,277,000 in 2023, indicating a slight increase [275]. Tax and Non-Operating Income - Income before income tax expense decreased by $3,859,000, or 3%, to$ 131,489,000 in 2024, while income tax expense increased by $3,204,000, or 14%, to$ 25,318,000 [155]. - The effective income tax rate rose to 19% in 2024 from 16% in 2023, with discrete tax net expenses recorded at $5,731,000 in 2024 [155]. - For the twelve months ended December 31, 2024, total non-operating income increased by$ 11,778,000, or 254%, to $16,424,000 compared to$ 4,646,000 in 2023 [151]. Shareholder Returns - The company repurchased 1,711,000 shares at a cost of $67,085,000 in 2024, leaving a remaining balance of$ 265,807,000 under the stock repurchase program [161]. - Cash dividends totaled $52,329,000 in 2024, with$ 0.075 per share in the first three quarters and $0.080 per share in the fourth quarter [162]. - The Company declared a cash dividend of$ 0.080 per share in the fourth quarter of 2024, an increase from $0.075 per share in the previous quarter [310]. Assets and Liabilities - Total assets decreased from$ 2,017,812 in 2023 to $1,992,850 in 2024, a decline of approximately 1.2% [200]. - Total current liabilities increased from$ 151,884 in 2023 to $169,380 in 2024, an increase of approximately 11.5% [200]. - Shareholders' equity rose from$ 1,504,752 in 2023 to $1,517,505 in 2024, an increase of about 0.8% [202]. - The total inventory as of December 31, 2024, was$ 157,527,000, a decrease from $162,285,000 in 2023, reflecting a reduction of approximately 2.3% [280]. Accounting and Reporting - The Company recognizes revenue in accordance with ASC 606, reflecting the transfer of promised goods or services to customers [237]. - The consolidated financial statements include accounts of Cognex Corporation and its wholly owned subsidiaries, with all intercompany transactions eliminated [207]. - The Company adopted new accounting guidance in 2024 related to the disclosure of segment information, which was retrospectively applied to 2023 and 2022 [187]. - The Company adopted ASU 2023-07 for segment reporting, effective for fiscal years beginning after December 15, 2023, requiring disclosure of segment profit or loss measures used by the chief operating decision maker [269]. Risk Management and Supply Chain - The company has faced disruptions in the supply of key components due to global supply chain challenges, resulting in higher purchase costs and manufacturing delays [266]. - The company sources components from preferred vendors, and disruptions may lead to higher costs and delays if alternative vendors are required [267]. - The Company does not currently hedge interest rate exposures due to the relatively short maturities and investment-grade quality of its portfolio [180].